COLOR CODING FOR FULL DISCLOSURE

Back in the 20th Century, financial statements that were prepared by CPA's were considered the standard for accuracy and honesty. The Accountant's creed was Full Disclosure; anticipate all losses and take up no gains until they are realized. Relaxed government regulations for approved accounting practices near the end of the century have led to "cover up and corruption," with one of the biggest CPA firms in America found guilty of fraud and deceit. Now. the political scene is promoting "transparency," another term for full disclosure. Regulations are being instituted and a new dimension is coming into the mix - Color Coding. Like math, color is a universal language and it is capable of absolute accuracy.

Color is being introduced into the accounting process through a publication from University Press of America that is coordinated with an educational game that defines color coded accounts and precedes the development of Color Coded Financial Statements.

Assets are Blue, Liabilities are Red, Net Worth Accounts are Yellow, Income is Green and Expenses and Costs are Orange. Technology has advance to where this innovation can be simply incorporated into the system. Financial practices and schemes have advanced to the point where old tried and true accounting practices are inadequate to produce the goal of "full disclosure." Something new is needed to keep pace with the business world, and that new dimension is "Color Coding."

AN ESP APPROACH TO BUDGETING

A recent comprehensive study on budgeting published by University Press of America features a three part budget plan to produce a balanced budget. The plan is called "An ESP Approach to Budgeting." The plan has little to do with Extrasensory Perception; E stands for Existence, S for Survival and P for Progressive. Simply put, rather than plan spending and hope for income to cover costs, spending is planned and expedited as income warrants.

In the first stage, E, a budget is planned with the most conservative income and only the absolutely essential costs necessary for existence are included. This is a down hill budget that would lead to future bankruptcy but it allows the enterprise to exist in hope. In the second stage. S, enough income is budgeted to cover the expenses necessary to maintain operations and survive. In the final stage, P, spending is prioritized and activities are expedited as income allows. This is an Ultra-conservative approach and is perhaps more acceptable for "out of control" government entities than for high risk, low security entrepreneurs. It discourages the "fast buck, pot of gold" dream, but it reduces the catastrophic failure syndrome.

The ESP approach may be the road to recovery for bankrupt states and local authorities across the country who are apparently stagnated in the tax/benefit dilemma. Slowly developing activities in the progressive budget stage could not only stimulate tighter financial control, it could also portray a vivid picture to the public of the correlation between taxes paid and the benefits received, giving the public a more realistic understanding of how tax monies are used.

The study suggests that a total involvement of everyone effected by the budget in the budget process produces a more effective and efficient financial operation. Skillful monitoring of the budget is essential for adjustment to unanticipated conditions and circumstances.

Notre Dame Football

Although the arrogance of fans and players have turned me off at times, I have always admired the Spirit of the Fighting Irish. Consequently, I was shocked in the last seconds of the game against Stanford when the Irish actually gave up and let Stanford walk into the end zone for a touchdown without a hand raised to stop them. They said that it was a strategy to have time to score a touchdown and tie the game into overtime.

The game was already tied. Where was that famous Fighting Irish goal line stand, or the famous Fighting Irish strip the ball and recover the fumble? Evidentally win or loose, it's how you play the game that counts is not in the Fighting Irish spirit. What a shame.

Actually I thought that the Fighting Irish had a very good season. They played one of the toughest schedules of any team and they were in the fight every second until the final whistle, except in the last game against Stanford when they just gave up. They won as many games as they lost. Not bad at all.

The Fighting Irish started down hill when a "not the best" Southern Cal team just barely beat them. With a little bit of luck it could have been the other way. Then a Navy team with the "Fighting Irish Spirit" put the nail in the coffin.

Notre Dame will have winning seasons again,but it won't be the Coach that will bring it, it will be the Fighting Irish Spirit.